Infosys Shows Signs Of Exhaustion Ahead Of Q1 Results: SEBI RA Sees Support at ₹1,565

Infosys is showing signs of short-term technical exhaustion as it struggles near the crucial ₹1,600 resistance level, said SEBI-registered analyst Vijay Kumar Gupta.

Infosys traded 2% lower on Monday, reflecting the weakness in broader markets. The Nifty IT index continued to slide after Tata Consultancy Services (TCS) reported weak first-quarter results on Friday. All eyes now turn to IT bellwether Infosys, which is expected to report Q1 earnings on July 23.

Mapping the technicals

The stock has slipped below key Ichimoku Cloud indicators, the Tenkan-Sen at ₹1,596 and Kijun-Sen at ₹1,594.9. It is hovering just above the Kumo cloud, indicating that the long-term trend remains intact but short-term momentum is weakening. The flattening of the Lagging Span (Chikou) near current price levels further reflects a lack of trend strength, Gupta added.

While there has been a surge in volumes (11.39 million compared to an average of 6.52 million), suggesting institutional activity, the bearish candle structure implies increased selling pressure, the analyst noted.

Momentum indicators, including commodity channel index (CCI), have fallen sharply to -155.45, breaking down from overbought territory and forming a negative crossover with its average. On-Balance Volume (OBV) is stagnating, showing divergence with price action, which may indicate distribution.

Infosys: What next?

The analyst sees immediate support at the lower edge of the cloud at ₹1,565, while the ₹1,520 level serves as a key structural support. Resistance persists in the ₹1,600- ₹1,606 range, with multiple rejections observed.

Bullish confirmation would require a sustained move above ₹1,620, along with improving volume and a CCI recovery above zero.

Gupta asks to avoid taking fresh long positions until the stock stabilizes above ₹1,565 and momentum indicators turn positive. Swing traders are recommended to wait for either a breakdown below ₹1,565 or post-earnings clarity. For long-term investors, the ₹1,520 zone remains a critical make-or-break level.

Infosys shares have shed nearly 17% this year.

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